May 25, 2024
Bitcoin News

Binance Labs Invests in Bitcoin-native Restaking Protocol BounceBit

Binance Labs, the venture capital arm of the world’s largest cryptocurrency exchange, has announced an investment in BounceBit, a Bitcoin-native restaking protocol.

BounceBit attempts to combine centralized finance (CeFi) and decentralized finance (DeFi) elements, opening up new possibilities for Bitcoin’s use.

Empowering Bitcoin Through CeDeFi Solutions

Yi He, co-founder of Binance and head of Binance Labs, emphasized the significance of BounceBit’s mission in empowering Bitcoin through secure and transparent CeDeFi solutions. BounceBit represents a new wave of protocols seeking to bring DeFi capabilities to Bitcoin, a trend known as Bitcoin DeFi (BTCFi).

Expanding Bitcoin’s Use Case

By offering restaking infrastructure, BounceBit aims to expand Bitcoin’s use case beyond being a store of value to becoming a yield-generating asset with increased capital efficiency.

The protocol incentivizes validators to stake both Bitcoin and BounceBit ecosystem tokens within its proof-of-stake (PoS) layer-1 ecosystem.

Jack Lu, founder and CEO of BounceBit, expressed the company’s dedication to driving Bitcoin utilization securely and transparently through its restaking infrastructure.

Binance Labs’ Support and Market Impact

Binance Labs’ investment comes as it continues to foster innovation independently from Binance exchange. With a portfolio worth over $10 billion and a history of supporting over 250 projects worldwide, Binance Labs is poised to contribute significantly to BounceBit’s growth.

BTCFi on the Rise Ahead of Bitcoin Halving

The increasing interest in Bitcoin-native DeFi is evident as BTCFi protocols gain traction ahead of the upcoming Bitcoin halving on April 19.

Decentralized exchange (DEX) MerlinSwap’s record-breaking initial DEX offering (IDO) underscores the growing demand for innovative DeFi solutions on Bitcoin’s platform.

Nash Lee, co-founder of MerlinSwap, highlighted the community’s eagerness to drive forward the DeFi revolution on Bitcoin, indicating a broader shift towards recognizing Bitcoin’s untapped potential in the DeFi space.

Image from Wallpapers.com

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